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Are you curious about the eXp Realty commission split and other fees associated with becoming an eXp Realty agent, broker, or team leader?
In this post, I share in-depth all the costs and opportunities associated with when you join eXp Realty.
The commission split and fees I discuss in this article are exactly what I and every other
eXp agent pay to the company.
If you would rather watch or listen to this content, check out the video below!
Equitable Standards
A notable aspect of eXp Realty is the uniformity in commission splits among agents, without any exclusive deals—a departure from the practice in several other real estate brokerages. At eXp Realty, all agents share identical commission splits and fees, irrespective of tenure, transaction volumes, or similar factors.
This consistent approach reflects eXp Realty’s fundamental value of transparency, guaranteeing equal opportunities for success among all its agents.
eXp Realty Commission Split
Agents at eXp Realty are subject to an 80/20 commission split, limited to a maximum of $16,000 in gross commission paid to the company. Upon achieving $80,000 in gross commissions within a year, agents will allocate 20 percent, totaling $16,000, to eXp Realty.
After hitting this threshold, agents will retain their entire commission, except for a capped transaction fee, risk management fee, and broker fee, for the remainder of the year.
Revenue Share
Regarding eXp Realty's commission structure, revenue share is vital to highlight. This initiative provides real estate agents with an extra income avenue by assisting in recruiting other agents to join the brokerage.
Revenue sharing is derived from eXp Realty's portion of the commission split, specifically the 20 percent, and doesn't incur additional agent costs. eXp Realty distributes 50 percent of this 20 percent to agents each month, with the remaining 50 percent allocated to cover the company's overhead and profit.
I recommend exploring my detailed review of eXp Realty's revenue share for a comprehensive understanding.
Xp Realty Fees
eXp Realty's fee structure comprises monthly and transactional fees, which I'll explore further.
eXp Realty does not charge desk, royalty, or franchise fees. Additionally, there exist no minimum production or attraction requisites.
As long as agents stay up to date with the $85 monthly fee and fulfill all state licensing requirements, they can maintain their licensing status at eXp Realty.
Monthly Fees you pay with eXp Realty.
Upon joining eXp Realty, there will be a $149 fee for the initial onboarding. Then, eXp Realty applies an $85 monthly charge, acknowledged as the cloud brokerage fee. This fee encompasses access to kvCORE, Skyslope, Marketing Center, and Workplace, as well as comprehensive training and support.
kvCORE is eXp Realty's lead generation and website solution tailored for real estate agents. On the open market, access to this system typically exceeds $500 per month. This aspect alone substantiates the value of the $85 monthly fee. For an extensive understanding, refer to my Complete kvCORE Guide.
eXp Realty Transaction Fees
Once a real estate agent reaches their commission cap, they transition to a 100 percent commission and only incur a $250 fee per transaction. If an agent pays $5000 in transaction fees after reaching the cap, they will move to a $75 transaction fee for the remainder of the anniversary year.
For instance, consider a scenario where you sell 60 homes yearly with an average commission of $6,000 per transaction. Here's how your eXp Realty commission split would unfold:
- Transactions 1-14 follow an 80/20 split with NO transaction fee.
- Transactions 15-34 operate on a 100/0 split with a $250 transaction fee.
Transactions 35-60 proceed with a 100/0 split and a $75 transaction fee.
To elaborate, you would reach your cap by the 14th transaction ($6,000 x 14 transactions = $84,000). Transactions 15-34 would entail a $250 fee per transaction, totaling $5,000. Subsequently, transactions 35-60 would incur a fee of $75 per transaction.
Risk Management Fee (Errors & Omissions)
The term "errors and omissions" is a familiar concept for many real estate agents. At eXp Realty, we refer to it as the risk management fee. While the specific amount of the risk management fee varies by country, in the US, it is $40 for each transaction.
Once a real estate agent reaches $500 in risk management fees paid for the year, they are exempt from further risk management fees for the remainder of the anniversary year.
Additionally, all agents in the US are subject to a $25 real estate broker review fee per transaction, and this fee does not have a cap. For agents in Canada, the corresponding fee is $29 per transaction.
Real Estate Broker Review Fee
All US agents pay a $25 real estate broker review fee per transaction. This fee does not cap. For agents in Canada, this fee is $29 per transaction.
Commission Split and Fees Example
In the given scenario of 60 transactions by an agent, their annual total of eXp Realty Commission Split payments would amount to:
- $16,000 – Commission Cap
- $5,000 – $250 Transaction Fees
- $1,875 – $75 Transaction Fees
- $500 – Risk Management Fees
- $1,500 – Broker Review Fees
- $24,875 – Total eXp Realty Fees
Interested in earning back $16,000 of those fees? Explore the ICON agent award program below to discover how you can achieve this upon joining eXp Realty.
eXp Realty Mentor Fees
Agents who've completed less than three transactions in their current market will be enrolled in eXp Realty's mentor program. Agents in the mentor program are assigned a certified mentor who will help assist with the agent's first three transactions at eXp Realty.
Mentees pay an additional 20 percent split on these first three transactions, which pays the mentor and mentor program (which consists of additional training modules for the mentee).
Once the mentee closes three transactions with eXp Realty, they graduate from the mentor program and are not subject to the additional 20 percent split.
eXp Realty Personal Deals
eXp Realty allows agents to conduct up to three personal transactions annually without incurring the 20 percent split to the brokerage.
For these personal deals, agents are accountable for a $250 transaction fee, a $40 risk management fee, and a $25 broker review fee.
A personal transaction specifically includes deals in which the eXp Realty agent is directly involved and listed on the contract.
eXp Realty Seller Fees
eXp Realty doesn't impose extra fees on clients. Agents can set their commission rates and any supplementary fees for clients. However, when charged to clients, these rates and fees are divided with eXp Realty following the standard commission split.
Should an agent opt to lower their commission rate and still meet their commission cap, a minimum transaction split of $500 is owed to eXp Realty. Consequently, although an agent can effectively bring their commission down to zero for the client, they remain accountable for paying eXp Realty $500 for that transaction, along with the broker review and risk management fees.
ICON Agent Program
At eXp Realty, agents can regain their $16,000 cap annually through eXp Realty stock. Eligibility for the ICON Agent Program is based on eXp Realty's production and involves two distinct paths. It's important to note that it's an either-or situation, not a combination of both. Moreover, meeting the cultural requirements is essential, as explained below.
Cap Plus $5,000 in Capped Status Transaction Fees:
One method is to achieve "a $16,000 company cap payment alongside capped status transactions within the same anniversary year, resulting in capped status transaction fees totaling at least $5,000."
$500,000 Annual Gross Commission Income Plus ICON Qualifying Fee:
Another path to qualify as an ICON agent involves reaching "an annual gross commission income of $500,000 or more, closing a minimum of 10 transactions, and paying an 'ICON Qualifying Fee.' This fee is $5,000, minus the capped transaction fees paid during the same anniversary year."
For further details, explore my comprehensive post on the ICON program at eXp Realty.
Team Leader Fees at eXp Realty
If you lead a team at eXp Realty, you have several options for structuring your team. These options encompass a self-organized team, a standard team, or a mega-ICON team.
Self-Organized Team:
This is the most informal team structure at eXp Realty. You submit a team roster to eXp Realty, and all agents, including yourself, can market as part of the team. Each agent maintains a $16,000 commission cap and pays their individual $85 monthly fee. Commission sharing is possible on deals where applicable.
Standard Team:
A standard team is more structured than a self-organized team. It requires a team agreement, and the team leader must meet a production requirement of $6,000,000 in gross commission income from the previous year. Under this arrangement, team agents receive a half-cap of $8,000 instead of the standard $16,000. However, they are obliged to split 25% of each closed transaction with the team leader.
Mega ICON Team:
A Mega ICON team comprises ten or more agents, each receiving a quarter cap of $4,000. The Mega ICON team leader is responsible for contributing a minimum of $56,000 in company funds by the year's end ($4,000 x 10 agents + $16,000 for their cap).
For more detailed insights, refer to my comprehensive post on the various team structures available at eXp Realty.
Wrapping Things Up
In conclusion, the eXp Realty Commission Split is very generous compared to most brokerages. Especially when considering the ICON Agent Program, eXp Realty is unique. Combine this with all the tools and training that eXp Realty provides to real estate agents, and you get an excellent opportunity to grow your career in real estate.
Do you have any questions related to eXp Realty’s Commission Split? Put them in the comments below, and I will happily answer them!